Financial Summary

Blue Shield of California reported a net income of $573 million in 2019, against revenues from premiums and other sources of $21.086 billion. Of the company's total revenue, $18 billion, or 85.4 percent, was spent on medical care, up from $17.2 billion, or 83.6 percent in 2018.

Our 2% Pledge: In 2011, Blue Shield became the first health plan in the nation to voluntarily limit net income to two percent of revenue. For any year in which Blue Shield earns more than two percent, the company will return the difference to its customers and the community, with approval by the board of directors. In 2019, the pledge amount was $120 million. Since we made the pledge, the company has returned more than $600 million to our customers and the community. 

Our financial performance in 2019 enabled us to also make a $45 million contribution to Blue Shield of California Foundation. Blue Shield of California Foundation, whose mission is to build lasting and equitable solutions that make California the healthiest state and end domestic violence, has received more than $100 million over the previous three years.

Find information about Blue Shield’s 2019 executive compensation (PDF, 455.7 KB).


Blue Shield of California Consolidated Financials*

($ in millions) 2019 2018 2017 2016
Premiums, net & other revenue $21,086 $20,632 $17,684 $17,598
Less: medical expenses $18,006 $17,249 $15,035 $15,085
Gross Profit
Medical expenses as a percent of premiums
$3,080
85.4%
$3,383
83.6%
$2,650
85.0%
$2,513
85.7%
Marketing and selling $649 $723 $685 $631
ACA taxes, premium taxes and other fees $273 $584 $261 $451
General and administrative $1,884 $1,579 $1,541 $1,398
Total administrative expenses $2,806 $2,286 $2,487 $2,480
Pre-tax operating income $276 $497 $163 $33
Investment income $426 $119 $142 $169
Income before taxes $702 $616 $304 $202
Income taxes $129 $203 $8 $135
Net Income
Profit margin (net income as a % of premiums, net)
$573
2.7%**
$413
2.0%
$296
1.7%
$67
0.4%
2% Pledge amount*** $120 $57 $0 $0
Foundation contribution (millions) $45 $45 $39 $34

*Additional details on Blue Shield’s financial performance can be found on the California Department of Managed Health Care website by searching for “California Physicians’ Service.

**2019 net income margin at 2% after excluding unrealized equity gains

​***In years when our profit margin is less than 2% we do not return any funds as part of our 2% Pledge commitment.